The United States Senate voted Thursday to repeal the Securities and Exchange Commission's anti-crypto banking rule, Staff Accounting Bulletin (SAB) 121, in a vote that saw Democrats unite with Republicans. But President Joe Biden is likely to veto the move, based on his previous comments.
Republican lawmakers had led the charge on attempting to take down the policy, which discourages banks from offering crypto custody services. But 12 Democrats joined most Republicans in voting to repeal the policy, with a final vote of 60 to 38.
Democrat Senators that broke with party lines to vote in favor of the resolution include Cory Booker (NJ), Bob Casey Jr. (PA), Jacky Rosen (NV), and Jon Tester (MT).
Last week, the U.S. House of Representatives did much the same in a 228 to 182 vote. But Biden has already said that he would veto the resolution if it's passed.
SAB 121 aims to “protect investors in crypto asset markets and to safeguard the broader financial system” by forcing public companies—such as banks—to keep the crypto they custody as liabilities on their corporate balance sheets.
But some lawmakers have argued that the proposed bill would scare away banks—because it would be too costly—and therefore not benefit investors and customers.
A bipartisan group of lawmakers earlier this year argued that the bill wouldn’t work. Sen. Cynthia Lummis (R-WY), Reps. Wiley Nickel (D-NC), and Mike Flood (R-NB) introduced a joint resolution in the Senate and House of Representatives to repeal it.
Republicans have been particularly outspoken about American regulators—especially the SEC—being too heavy handed in cracking down on the digital asset industry. But today’s vote shows that the issue may be bipartisan.
Nonprofit organization Satoshi Action Fund CEO Dennis Porter yesterday told Decrypt that both Democrats and Republicans are open to the idea of laws that protect American citizens’ rights to hold and use digital assets, but that the Biden Administration is particularly anti-crypto.
"I am happy to see Democrats and Republicans join hands across the aisle to oppose SAB 121," Porter told Decrypt after today's vote. "For years, I have supported the idea that Bitcoin and digital assets are nonpartisan, and that Democrats, progressives, and liberals can advance their issues by better understanding the power of this technology. That would include financial inclusion and banking the unbanked."
"I hope President Biden joins with the supermajority of 60 Senators who aligned with repealing SAB 121," Porter added.
Editor's note: This story was updated after publication with additional details.